Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of temporarily limiting the ability of private creditors to sue for debt recovery for low-income countries.

The Government is fully focused on ensuring that the private sector provides debt relief for low-income countries where this is required as part of an internationally agreed debt treatment. For example, under the Common Framework for Debt Treatments beyond the DSSI, private sector participation on at least as favourable terms as bilateral creditors is a fundamental principle. The G20, including the UK, has repeatedly emphasised the importance of this principle.

The Government does not currently have any intention to pursue a legislative approach that would force private lenders to participate in debt relief initiatives. Any legislative approach would need to address a number of challenges. For example, legislating may increase the cost of finance for low-income countries or reduce the availability of finance to meet wider development goals.